PT PMA Taxes in Bali in 2026

If a foreign investor opens a PT PMA in Bali, the company’s tax structure should be planned before it receives its first revenue, not at the end of the year.

A company may already have an NIB and a corporate bank account and may have received its first client payments. However, this does not necessarily mean that its tax compliance is being handled correctly.

The main problems usually arise when a company:

does not understand which tax regime applies;
fails to withhold tax from contractor payments;
overlooks taxes related to property rental;
mixes personal and corporate transactions;
misses monthly reporting deadlines;
contacts an accountant only when the annual tax return is due.

Since 2025, tax administration in Indonesia has operated through Coretax DJP, the government system used for tax registration, filing, payments, and other tax administration services.

For this reason, in 2026, PT PMA tax compliance and accounting should be organized from the company’s first month of operation rather than corrected retrospectively.

The Key Points in Simple Terms

A PT PMA in Bali will usually need to consider several separate areas of taxation.

Corporate Income Tax at 22%

For companies established in the form of a PT, the former 0.5% regime should no longer be treated as the default tax framework.

Instead, the standard corporate income tax rate of 22% applies.
This should not be confused with the previous regime under which tax was calculated as 0.5% of turnover.
Reduced Effective Rate of 11%

If the company’s annual turnover is below IDR 4.8 billion, the standard 22% rate may be reduced by half, resulting in an effective rate of 11%.

Unlike the former 0.5% regime, this is not a temporary three-year facility. It may continue to apply as long as the company meets the relevant turnover conditions.
Value-Added Tax

In 2026, companies should not automatically apply 12% VAT to every transaction.
For many ordinary goods and services, the calculation is structured so that the effective VAT burden remains 11%.

For luxury goods, the effective rate is 12%.

The correct VAT treatment must be determined for each transaction rather than applying one percentage to every invoice.
Taxes on Payments to Employees and Contractors

If the company pays employees, Indonesian residents, contractors, consultants, or foreign service providers, it may be required to withhold tax, issue the appropriate documentation, and submit the relevant reports.
Tax on Land and Building Rental

If a PT PMA rents an office, commercial premises, villa, warehouse, land, or another property, a final tax equal to 10% of the gross rental amount may apply.
This cost is frequently omitted from the initial business budget.
Tax Filing Deadlines
A PT PMA does not have only one annual tax return.

Certain taxes require monthly payments and reporting. The company’s annual corporate tax return is generally due no later than four months after the end of the tax year, which means 30 April where the tax year follows the calendar year.
The key point is that PT PMA taxation is not based on one percentage.

It involves:
- the company’s applicable tax regime;
- turnover;
- taxable income;
- VAT;
- withholding taxes;
- rental payments;
- international payments;
- supporting documents;
- filing deadlines;
- Coretax DJP administration.

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What Changed for PT PMA
Taxes in 2026

The main development is not necessarily a new tax rate. The more significant change is the way tax facilities are applied and the introduction of more transparent digital administration.

Coretax DJP has become the main system for:

tax registration;
filing tax returns;
making tax payments;
accessing tax administration services;
managing taxpayer documentation.

The system has handled tax processes since the January 2025 tax period.
For PT PMA companies, this means that company data, tax returns, payments, and supporting documents must be consistent.

In 2026, a PT PMA should determine from the beginning:

who is responsible for accounting;
which taxes may arise each month;
which payments require tax withholding;
which expenses require supporting documents;
whether the standard 22% rate or the reduced effective 11% rate applies;
when the company must register as a Taxable Entrepreneur;
which documents are required in Coretax DJP;
who is responsible for maintaining the tax calendar.

Without a structured approach, the company may not only overpay taxes but also face problems during:

tax reviews;
license, immigration, or corporate status renewals;
bank compliance procedures;
verification of business activity;
licensing processes.

Learn more about how to open a company in Bali in 2026 in our article
How to Open a PT PMA in Bali in 2026: A Guide for Foreigners

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Taxes Commonly Applicable to PT PMA Companies

The following tax areas are commonly relevant to PT PMA companies in Bali.

Corporate Income Tax at 22%

When the company is subject to the standard corporate income tax rate

The applicable taxable income and supporting documentation for revenue, expenses, agreements, invoices, and payments

Reduced effective rate of 11%

If the company meets the conditions related to annual turnover below IDR 4.8 billion

Whether the reduction can be applied, whether the turnover threshold has been exceeded, and whether taxable income has been calculated correctly

VAT

If the company is registered or required to register as a Taxable Entrepreneur

Which rate and tax base apply to the specific transaction

Employment income tax

If the company has employees or makes payments to individuals

Whether withholding and reporting have been calculated correctly

Withholding tax on payments to residents and non-residents

If the company pays contractors, consultants, service providers, or foreign recipients

Whether tax must be withheld and whether documentation exists to support a reduced rate

Land and building rental tax

If the company rents land or a building

Who must withhold and pay the tax, and whether the cost has been included in the budget

Annual corporate tax return

Applies to the company as a taxpayer

Whether the annual return has been filed and all monthly obligations have been completed

This list does not replace an individual review.

The applicable taxes may differ depending on:

KBLI;
payment structure;
employees;
contractors;
business activities;
type of income;
international transactions.

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Indonesian Tax Terms Explained in Simple Language

Official Indonesian tax abbreviations may appear in tax documents, accounting records, and correspondence with accountants.

Corporate Income Tax at 22%

PPh Badan / Corporate Income Tax

The standard income tax applicable to companies

Reduced effective rate of 11%

PPh Badan with a rate reduction

The standard 22% rate reduced by half where the applicable turnover conditions are met

VAT

PPN

Value-Added Tax

Taxable Entrepreneur status

Pengusaha Kena Pajak / PKP

The status of a company required to charge, report, and administer VAT

Tax on salaries and payments to individuals

PPh 21

Withholding tax on income paid to individuals

Tax on payments to Indonesian companies for certain services

PPh 23

Withholding tax on certain payments made to Indonesian tax residents

Tax on payments to foreign recipients

PPh 26

Withholding tax on payments made to non-residents

Tax on land or building rental

PPh 4(2)

Final income tax applicable to certain categories of income, including property rental

Annual corporate tax return

SPT Tahunan Perusahaan / SPT Tahunan Badan

The company’s annual corporate income tax return

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How the Main PT PMA Taxes Are Calculated

The formulas below provide a general overview.
They do not replace calculations prepared by a qualified accountant, but they help explain how the tax liability is calculated and where a company may overpay.

Corporate Income Tax at 22%
The standard corporate income tax rate for a PT PMA is 22%.

Simplified formula:
Corporate Income Tax = Taxable Income × 22%

Example:
The company has taxable income of IDR 700,000,000.
IDR 700,000,000 × 22% = IDR 154,000,000
Corporate Income Tax: IDR 154,000,000

A correct calculation requires documents supporting:
- revenue;
- expenses;
- agreements;
- invoices;
- payments;
- accounting entries.
If transactions are not documented properly, taxable income may be calculated differently from what the company expected.
Reduced Effective Rate of 11% for Turnover Below
IDR 4.8 Billion
If the company’s annual turnover is below IDR 4.8 billion, the standard 22% rate may be reduced by half.

This results in an effective rate of 11%.
Simplified formula:
Corporate Income Tax = Taxable Income × 11%

Example:
A company with annual turnover below IDR 4.8 billion has taxable income of IDR 700,000,000.
IDR 700,000,000 × 11% = IDR 77,000,000
Corporate Income Tax: IDR 77,000,000

The main difference from the former 0.5% regime is that this treatment is:
- not a tax of 0.5% of turnover;
- not a temporary three-year regime;
- still based on taxable income;
- potentially available as long as the relevant turnover conditions remain satisfied.
VAT on Ordinary Goods and Services

In 2026, VAT on many ordinary goods and services is not calculated as a straightforward 12% of the full sales value.

For goods and services outside the luxury-goods category, the following calculation may apply:
VAT = Sales Amount × 11/12 × 12%
The effective burden is therefore 11%.

Example:
The company provides services worth IDR 100,000,000.
IDR 100,000,000 × 11/12 × 12% = IDR 11,000,000
VAT: IDR 11,000,000
For ease of understanding:
IDR 100,000,000 × 11% = IDR 11,000,000

However, for documentation purposes, it is important to understand the formal calculation: a 12% rate applied to a special tax base equal to 11/12 of the transaction value.
DJP explains that the formal 12% rate is combined with the special 11/12 tax base, meaning that the effective VAT burden for many ordinary transactions remains 11%.
VAT on Luxury Goods

For luxury goods, the effective VAT rate is 12%.
Formula:
VAT = Sales Amount × 12%

Example:
A luxury product is sold for IDR 100,000,000.
IDR 100,000,000 × 12% = IDR 12,000,000
VAT: IDR 12,000,000

For this reason, it is incorrect to say that VAT in Indonesia is automatically 12% for every transaction.
The calculation differs between ordinary transactions and transactions involving luxury goods.
Withholding Tax on Payments to Foreign Recipients

If a PT PMA pays a foreign company or foreign individual, the company must determine whether withholding tax applies to the non-resident payment.

If the recipient is not entitled to a reduced rate under an applicable tax treaty, or the required supporting documents have not been prepared, a rate of 20% may apply.

Formula:
Withholding Tax = Payment to Foreign Recipient × 20%

Example:
A PT PMA pays a foreign contractor IDR 50,000,000 for services.
IDR 50,000,000 × 20% = IDR 10,000,000
Tax to be withheld: IDR 10,000,000

If the recipient is entitled to a reduced treaty rate, the calculation may be different.
However, the company must generally prepare proof of the recipient’s tax residency in advance. Without the necessary documentation, the 20% rate may apply.
Tax on Land and Building Rental

If a PT PMA rents an office, commercial premises, land, villa, warehouse, or another property, the final tax on land and building rental must be considered.

Formula:
Land and Building Rental Tax = Gross Rental Amount × 10%

Example:
The company rents commercial premises for IDR 300,000,000 per year.
IDR 300,000,000 × 10% = IDR 30,000,000
Land and building rental tax: IDR 30,000,000

This tax should be considered before the rental agreement is signed.
Otherwise, a dispute may arise after payment over who is economically responsible for the additional 10%: the landlord or the tenant.
DJP calculates the final tax on land and/or building rental as 10% of the gross rental amount.
Withholding Tax on Payments to Indonesian Companies for Services
If a PT PMA pays an Indonesian company for certain services, withholding tax may apply to the payment.
For many services, the rate is 2% of the gross service fee.

Formula:
Withholding Tax = Service Fee × 2%

Example:
The company pays an Indonesian contractor IDR 20,000,000 for services.
IDR 20,000,000 × 2% = IDR 400,000
Tax to be withheld: IDR 400,000

The contractor may therefore receive the service fee after deduction of the withholding tax, while the paying company must document and report the withholding correctly.
The company must verify separately whether the specific service falls within this category.

DJP applies the 2% rate to various service payments, including certain:
- technical services;
- management services;
- consulting services;
- other specified services.

Summary of the Main Calculations

Corporate Income Tax at 22%

Taxable Income × 22%

Standard corporate income tax rate

Reduced effective rate of 11%

Taxable Income × 11%

Standard 22% rate reduced by half if the applicable turnover conditions are met

VAT on ordinary transactions

Amount × 11/12 × 12%

Effective burden of 11% through a special calculation

VAT on luxury goods

Amount × 12%

Full effective VAT rate of 12%

Payment to a foreign recipient

Payment Amount × 20%

May apply where no reduced treaty rate is available

Land and building rental

Gross Rent × 10%

Frequently omitted from the initial budget

Payments to Indonesian companies for certain services

Service Fee × 2%

Must be checked based on the type of service

A formula alone does not resolve the tax issue.

The same payment may be treated differently depending on:

who receives the money;
what the company is paying for;
whether there is an agreement and invoice;
whether the company has PKP status;
whether supporting documents are available;
whether a reduced rate can be applied;
whether the payment relates to rent, services, salary, dividends, or another category.

The main task for a PT PMA is to determine the tax treatment of each transaction before making the payment.

This allows the company to calculate tax in advance rather than discovering the tax obligation after the money has already been transferred.

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Corporate Income Tax at 22%

For companies established in the form of a PT, the standard corporate income tax rate is 22%.
This means that the previous assumption of “0.5% of turnover during the initial years” should no longer be included automatically in a PT PMA financial model.

If the company is planning:

revenue;
pricing;
profit margins;
contractor payments;
accounting costs;
operating budgets,

the tax burden should be calculated based on the current corporate income tax framework.

However, the 22% rate should not be oversimplified.

Corporate Income Tax at 22%:

does not replace the company’s other taxes;
does not eliminate VAT, withholding tax, or land and building rental tax;
requires the correct determination of taxable income;
depends on agreements, invoices, payments, and supporting documents;
may be reduced to an effective 11% if the company meets the turnover conditions;
requires proper accounting from the first month.

If the company estimates its tax informally, without supporting documents or a clear understanding of taxable income, the final amount may differ significantly from its expectations.

When the 22% Rate Is Especially Important

OSS is Indonesia’s government online system for business licensing. Companies use it to obtain key registration and licensing documents.

NIB is the main business identification number. A company receives it after registration in the OSS system.

However, having an NIB does not mean that the company can automatically carry out any business activity.

For some sectors, NIB may be sufficient as the basic business legalization. For others, standard certificates, verification, licenses, PB UMKU, or additional sector-specific documents may be required.

That is why, when checking a PT PMA, it is important to review not only whether the company has an NIB, but also the full set of permits required for the specific KBLI, risk classification, and place of business.

When the Effective 11% Rate May Apply

If the company’s annual turnover is below IDR 4.8 billion, the standard 22% rate may be reduced by half, resulting in an effective rate of 11%.

This differs significantly from the former 0.5% regime:

it is not 0.5% of turnover;
it is not limited to three years;
the reduction may continue to apply indefinitely;
the key condition is compliance with the turnover threshold;
the calculation still requires proper accounting and supporting documents.

For a PT PMA, the correct question is therefore no longer simply:
“Can the company use the 0.5% regime?”

Instead, the company should determine whether it is entitled to the reduced 11% calculation and how that reduction must be reflected in its tax reporting.

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Reduced Effective Rate of
11% for Turnover Below
IDR 4.8 Billion

If the company’s annual turnover is below IDR 4.8 billion, the standard 22% corporate income tax rate may be reduced by half.

This results in an effective rate of 11%.
Previously, some companies used the 0.5% turnover regime as a key reference point. For PT PMA companies, this approach should now be replaced with a review of whether the reduced corporate income tax treatment is available.

Important points:

the 0.5% regime should no longer be assumed to apply to a PT;
the standard rate is 22%;
an effective rate of 11% may apply where annual turnover remains below IDR 4.8 billion;
the reduction is not limited to three years;
it may continue to apply while the company meets the conditions;
eligibility must be checked for the specific company.

When the 11% Rate May Be Beneficial

The reduced effective rate may be particularly relevant where:

the company is in its early stage of operation;
annual turnover remains below IDR 4.8 billion;
the business is preparing its first-year financial model;
the company needs to estimate its future tax burden;
the company wants to avoid unnecessary overpayment;
pricing, margins, and budgets must be calculated accurately.

When the 11% Rate May Stop Applying

The reduced effective rate may cease to apply where:

annual turnover exceeds IDR 4.8 billion;
the company calculates taxable income incorrectly;
supporting documents are incomplete or disorganized;
revenue and payments do not match the tax reporting;
the company does not maintain proper accounting;
the company does not review whether the relevant conditions remain satisfied.

The main mistake is continuing to calculate tax under the old 0.5% logic or assuming that the 11% rate applies automatically without review.

08

VAT in 2026

In 2026, VAT in Indonesia should not be handled under the assumption that every transaction is subject to a straightforward 12% charge.

For many ordinary goods and services, the calculation results in an effective burden of 11%.
For luxury goods, the effective rate is 12%.

DJP explains this through:

a formal VAT rate of 12%;
a special calculation base equal to 11/12 of the transaction value for ordinary transactions.

This distinction is important for financial planning.
If the company applies the wrong VAT treatment:

the client price may be calculated incorrectly;
the company’s profit margin may be lower than expected;
invoices may be issued incorrectly;
input VAT credits may not work as expected;
discrepancies may arise with VAT-registered counterparties.

The company must also determine whether it is required to obtain Taxable Entrepreneur status.
If the company exceeds the applicable turnover threshold and supplies taxable goods or services, it may be required to register as a Taxable Entrepreneur (Pengusaha Kena Pajak, or PKP).
DJP identifies the IDR 4.8 billion turnover threshold as an important factor, but the type of goods or services must also be considered.

For PT PMA companies, VAT should therefore be planned in advance, especially where the company works with:

corporate clients;
tourism services;
imported goods;
digital platforms;
regular contractors;
recurring service agreements.

09

International Payments and Withholding Tax on Non-Residents

One of the most common sources of unexpected tax losses for PT PMA companies is making international payments without preparation.

For example, a company in Bali may pay a foreign contractor or service provider for:

marketing;
software;
consulting;
design;
booking services;
advertising management;
commissions;
technical services;
content production;
foreign platform services.

Before making the payment, the company should establish whether withholding tax applies to the foreign recipient.
According to DJP, where a payment is made to a non-resident, the company should check whether a reduced rate is available under an applicable tax treaty.
If the relevant conditions are not met, the tax rate may be 20%.

A typical mistake looks like this:

The company pays the foreign contractor the full amount.
No tax is withheld.
The company does not prepare proof of tax residency.
No withholding documentation is issued.
Several months later, the company discovers that tax should have been withheld.

This creates a direct risk of:

additional tax assessments;
disputes with the contractor;
unexpected costs;
reporting corrections;
penalties.

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Tax on Land and Building Rental

Another tax frequently overlooked at the beginning is the tax on property rental.

If a PT PMA rents:

an office;
commercial premises;
land;
a villa;
a warehouse;
another property,

the company should review the final income tax applicable to land and/or building rental.

According to DJP, the tax is 10% of the gross rental amount.
The problem is that this tax is often excluded from the initial budget.

For example, the business owner may calculate only:

rent;
security deposit;
renovation;
furniture;
salaries;
advertising;
licenses.

The company may then discover an additional 10% land and building rental tax that must be withheld and documented correctly.

If the lease agreement has already been signed and the tax was not discussed, an uncomfortable question arises: who bears the economic cost of the tax—the tenant or the landlord?

For this reason, land and building rental tax should be reviewed before the agreement is signed, not after the first payment.

Learn more about how to choose the right land plot in Bali in 2026 in our article
Zoning in Bali in 2026: How to Check a Land Plot Before Leasing, Buying, or Opening a Business

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PT PMA Tax Calendar

A PT PMA cannot operate on the basis of the annual tax return alone.

The company may have monthly obligations depending on:

transactions;
employees;
PKP status;
contractor payments;
foreign payments;
rental arrangements.

A basic reporting schedule may look as follows:

Every month

Tax on salaries and payments to individuals

Every month

Withholding tax on payments to Indonesian and foreign recipients

Every month

VAT reporting, if the company has PKP status

By the 10th day of the following month

Payment of certain withheld taxes

By the 20th day of the following month

Filing of certain monthly tax returns

By 30 April

Annual corporate tax return, where the tax year follows the calendar year

DJP states that monthly returns for certain taxes must be filed no later than 20 days after the end of the relevant tax period.

The annual corporate tax return is due no later than four months after the end of the tax year. Where the tax year follows the calendar year, the deadline is 30 April.
If the company does not maintain a tax calendar, it may discover the problem only after a deadline has been missed.

A single penalty may be relatively small. However, repeated late filings may create a poor compliance record and additional questions during future reviews.

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How KITAS May Affect an Individual’s Tax Status

A foreign national’s tax status does not depend only on the type of visa or residence permit.

The analysis may also include:

the period spent in Indonesia;
the intention to reside in the country;
supporting documents;
the type of income;
whether the person has an Indonesian tax number;
the source of the payment.

For a PT PMA, this is particularly important in two situations.

The Company Pays a Foreign Individual
The company must determine:
- whether the person is an Indonesian tax resident;
- what immigration and tax status the person has;
- whether the person has an NPWP;
- what type of income is being paid;
- which withholding rate applies.
The PT PMA Owner Lives in Indonesia Under a KITAS
In this case, the owner’s personal tax status must be reviewed separately, including:
- personal income;
- reporting obligations;
- Indonesian tax residency;
- the relationship between the individual and the company;
- payments received from the company.
A KITAS does not replace a tax review.
It may be one of the documents demonstrating the basis for the foreign national’s stay in Indonesia, but the tax consequences depend on the full circumstances.
Further information about KITAS is available in our separate article.

Learn more about what an Investor KITAS is and why it may be useful in our article
Investor KITAS in Bali in 2026: Who It Is For, What It Gives You, and What to Check Before Applying

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Common Tax Mistakes Made by
PT PMA Companies in Bali

A foreign national’s tax status does not depend only on the type of visa or residence permit.

The analysis may also include:

the period spent in Indonesia;
the intention to reside in the country;
supporting documents;
the type of income;
whether the person has an Indonesian tax number;
the source of the payment.

For a PT PMA, this is particularly important in two situations.

Assuming taxes can be reviewed only once a year

Many obligations arise monthly

Assuming the former 0.5% regime still applies to a PT

The company may underestimate its tax burden and face additional assessments

Failing to review eligibility for the effective 11% rate

The rate depends on turnover conditions and the correct tax calculation

Ignoring the standard 22% rate in the financial model

The business may miscalculate pricing, margins, and budgets

Applying 12% VAT to every transaction

In 2026, the calculation depends on the category of the transaction

Failing to review PKP status

The company may miss a registration obligation or issue invoices incorrectly

Paying foreign contractors without preparing documentation

A 20% withholding tax may apply to the foreign payment

Forgetting land and building rental tax

Rental of land and/or buildings may be subject to tax equal to 10% of the gross rental amount

Mixing personal and corporate payments

It becomes difficult to verify expenses and the movement of funds

Failing to retain agreements and invoices

An undocumented expense may not be accepted for tax calculation purposes

Failing to configure Coretax DJP access

The company may miss filing or payment deadlines

Failing to align tax treatment with KITAS and the foreign national’s role

Payments to foreigners may be taxed differently depending on their status and the type of income

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How Sunrise Business Helps with PT PMA Tax Compliance

We begin by understanding how the company will earn money.

This includes reviewing:

where payments will come from;
who the company will pay;
whether the company will have employees;
whether it will rent property;
whether it will use foreign contractors;
whether VAT applies;
whether the business will use foreign services or platforms.

After that, the PT PMA tax structure can be organized so that the company does not overpay or accumulate compliance problems from its first month.

Sunrise Business helps to:

determine which tax regime applies to the company;
assess whether the standard 22% rate or the reduced effective 11% rate applies;
review the company’s turnover and the conditions for applying the reduction;
review VAT and PKP status;
analyze payments to foreign recipients;
check the documentation required for reduced treaty rates;
account for land and building rental tax;
establish a tax calendar;
separate personal and corporate payments;
prepare documents for the accountant;
work with Coretax DJP;
align the company’s tax treatment with its PT PMA structure, KITAS arrangements, and the foreign national’s actual role.

The objective is not merely to “file a return at the end of the year.”
The objective is to ensure that, from the first month, the company understands:

its taxes;
its deadlines;
its documentation;
its compliance risks.

15

FAQ

Planning to Open a PT PMA or Already Operating a Business in Bali?

Contact Sunrise Business.

We first review:

how the company earns revenue;
which expenses it has;
who receives company payments;
whether PKP registration is required;
whether foreign payments create withholding tax risks;
how the rental agreement is structured;
which reports must be filed each month.

The review establishes:

which tax treatment applies to the PT PMA;
whether the effective 11% rate may be available;
where the company risks overpaying;
what must be organized before the first tax review.

This prevents the company from postponing tax planning until problems have already arisen.

The information in this article is provided for general informational purposes only.
Tax regulations, rates, deadlines, Coretax DJP procedures, VAT requirements, international payment rules, rental taxation, and reporting obligations may change.
Before making a decision, the current requirements should be reviewed based on: